Inflation creates challenges for investors, but it also influences which sectors perform best.
## How inflation impacts stocks
– High inflation often pressures profit margins.
– Profitability depends on pricing power.
– Interest rates rise to combat inflation, lowering cohu stock valuations.
## Stocks that benefit from inflation
– Strong performance when oil prices rise.
– Consumer staples like Procter & Gamble and Coca-Cola.
– Financial firms like JPMorgan Chase and Goldman Sachs.
## Strategies for investors
– Energy, healthcare, consumer staples.
– Use dividend-paying stocks to maintain income flow.
– Consider global exposure where inflation trends differ.
**Conclusion**
Inflation is not purely negative for investors. By holding energy, financials, and consumer staples, portfolios protect wealth.
